Williams Company began operations in January 2017 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.

WILLIAMS COMPANY

Departmental Income Statements

For Year Ended December 31, 2017ClockMirrorCombinedSales$240,000$95,000$335,000Cost of goods sold117,60058,900176,500Gross profit122,40036,100158,500Direct expensesSales salaries21,5007,20028,700Advertising2,1003002,400Store supplies used8003501,150DepreciationEquipment1,3007002,000Total direct expenses25,7008,55034,250Allocated expensesRent expense7,1103,72010,830Utilities expense2,6002,2004,800Share of office department expenses10,50010,00020,500Total allocated expenses20,21015,92036,130Total expenses45,91024,47070,380Net income$76,490$11,630$88,120

Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $55,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $6,500; advertising, $1,200; store supplies, $400; and equipment depreciation, $400. It will fit the new department into the current rented space by taking some square footage from the other two departments. When opened, the new painting department will fill one-fifth of the space presently used by the clock department and one-fourth used by the mirror department. Management does not predict any increase in utilities costs, which are allocated to the departments in proportion to occupied space (or rent expense). The company allocates office department expenses to the operating departments in proportion to their sales. It expects the painting department to increase total office department expenses by $8,100. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 11%. No changes for those departments' gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales.

Required:

Prepare departmental income statements that show the company's predicted results of operations for calendar-year 2018 for the three operating (selling) departments and their combined totals.(Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)